Its members have confirmed a resolution to transfer their engagements to the farmers' group after holding a special general meeting.

More than 70% of all members voted, with 91% in favour of the merger.

The directors of Eifionydd Farmers Ltd say the changes are essential to protect Eifionydd Farmers and are in the long-term interest of members, customers and the local economy. Wynnstay Group Plc is a farmer-controlled body with over 80% of their current share-holding held by farmers, and more than 15% by the current work force.

The name Eifionydd Farmers, including the phrase Dolgellau a Dysynni, will be retained, and the financial strength of Wynnstay Group Plc will enable various planned improvements to go ahead.

Eifionydd Farmers spokesman Alun Williams said he was pleased that members had ratified the decision.

"By retaining the current branch structure it will be possible to maintain the level and quality of services to members and customers.

"As a large company, Wynn- stay is able to buy from a position of strength."

He said all existing Eifionydd branches will be kept open, and there will be more specialist staff in many sectors such as seeds, spray chemicals, animal feeds, fertilisers and animal health products.

"Such specialists are becoming essential in order to meet more stringent regulations and legal requirements in this sector," he said.

"As Eifionydd members become members of Wynnstay Group Plc, the proportion of farmer shareholders will increase even further."

Wynnstay Group managing director Bernard Harris said the last few years have been a difficult period for farmers' incomes.

Crises such as the foot-and- mouth epidemic and its consequences had combined to undermine confidence and to force many farmers to consider their position.

"There has been some improvement in recent months, in particular in the lamb sector, but in looking to the future we have to take account of issues such as the mid-term review and the determination of the UK government and the EU to reduce expenditure in the agriculture sector," said Mr Harris.

"These factors not only impact on farmers but also on businesses such as Eifionydd Farmers that supply farmers with their requirements.

"The changes will protect and enhance the role of staff and will enable them to provide a wider range of services, that would not be possible with Eifionydd Farmers maintaining a stand-alone position."

The merger means that every Eifionydd Farmers shareholder receives convertible loan stock in Wynnstay Group, which can be redeemed on face value if the convertible loan stock is held for two years from the date of registration.

For every pound held in the loan stock they will get a full share in Wynnstay Group, currently worth &#xA3;4.40.

Their pound share in Eifionydd Farmers will in two years become a share in Wynnstay Group Plc.

In the meantime, Wynnstay will pay 4% share interest on the convertible loan stock.